World to double electricity capacity additions over next decade
What's the story
The world has transitioned from the era of coal, oil, and gas to "the age of electricity," according to Fatih Birol, the executive director of the International Energy Agency (IEA). He made this statement while speaking at the COP31 UN climate summit in Turkey. Birol said that over twice as much electricity generation will be added to the global economy in the next decade than in the last one.
Sectoral shift
Transportation electrification surge
Birol highlighted the unprecedented rate at which transportation is being electrified. He noted that outside China, electric car sales have surged by 60% in the last nine months.
The rise of AI data centers and air conditioning systems are also driving electricity generation, as heatwaves become more severe and frequent due to rising global temperatures.
Future projections
Electricity generation doubling in a decade
Birol said that in the last decade, the world added some 5,000 gigawatts of electricity. He expects this number to be more than double in the next 10 years.
Governments from 185 countries are currently meeting in Antalya for annual talks on electrification as an alternative to fossil fuels.
A resolution has been proposed to derive 35% of final energy globally from electricity by 2035.
Clean transition
Renewable energy powering electricity generation
Birol said that most of the world's final energy is supplied by fossil fuels, mainly for transportation, heating, and industrial purposes.
However, he expects global electricity generation to be increasingly powered by renewable sources.
He also emphasized that electrifying activities would only require replacing half of their energy needs due to the inefficiency of fossil fuels.
Market forces
AI, air conditioning, and data centers driving electrification
Birol identified air conditioning, AI and data centers as one of the three major drivers of electrification.
He said that while 90% of US households have air conditioning, in India it's less than 20%, and in Nigeria about 5%.
He also stressed that global electricity demand is growing three times faster than total energy demand, making it impossible to stop this transformation.
Energy security
Solution to high UK electricity prices lies in renewable energy
Birol attributed high electricity prices in the UK to its dependence on imported gas.
He said that the solution lies not in importing more gas but building more renewable electricity at home.
He also stressed that if countries accept the electrification pledge at COP31, it would definitely lead to a secure, more affordable, and livable planet.